It looks Treasury Secretary Steven Mnuchin is adopting President Donald Trump’s proposal of implementing a weak-dollar policy, reversing the official White House mantra of a strong U.S. dollar.
Speaking in an interview with CNBC on Thursday, the Treasury Secretary explained the benefits of a devalued dollar, including how it can boost trade for the country.
“Obviously, the short-term issues of the dollar have both positive and negative impacts for different parts of the economy. Obviously, as it relates to trade, having a weaker dollar is somewhat better for us,” Mnuchin said.
“I do think over long periods of time, the dollar’s strength is an indication of the reserve currency and the confidence people have in the U.S. economy.”
A strong dollar is great for Americans because it gives them more purchasing power, especially when the U.S. imports a lot of cheap goods. At the same time, if President Trump wants to increase the nation’s exports, then he would need to enter into a currency war with the likes of China and Japan, and no consumer should ever want that.
President Trump has repeatedly said this year that the U.S. dollar is “getting too strong” and that he likes “a dollar that is not too strong” (SEE: Trump Goes Keynesian: ‘Lots of bad things happen with a strong dollar’).
“I like a dollar that’s not too strong. I mean, I’ve seen strong dollars. And frankly, other than the fact that it sounds good, lots of bad things happen with a strong dollar,” Trump said to the Wall Street Journal. “I do like low interest rates. I mean, you know, I’m not making that a big secret. I think low interest rates are good.”
Obviously, Keynesians, social justice warriors and neocons have infiltrated the administration. It’s about time an Austrian did as well.
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